1. Session #39 Partnering for Compliance and Consumer Protection Julie Arthur, U.S. Department of Education Fran Susman, U.S. Department of Education

2. Partnering for Compliance and Consumer Protection Regulatory Requirements Common Consumer-Related Findings External and Internal Partnerships to Assist in Oversight Resources 2

3. Why is Compliance Important? Title IV funding: –2008-2009: $105.8 billion –2009-2010: $129.9 billion* Total schools receiving Title IV funds: –2008-2009: 6138 –2009-2010: 6218 *Preliminary Data—without FSEOG or FWS 3

4. Schools by Type 2008-2009 AY Source: National Student Loan Data System (NSLDS) and Campus-Based System

5. Schools by Type 2009-2010 AY * *Funding data does not include FWS or FSEOG Source: National Student Loan Data System (NSLDS)

6. Consumer Information 34 C.F.R. 668, Subpart D §668.41 Reporting and disclosure of information §668.42 Financial assistance information §668.43 Institutional information §668.44 Availability of employees for information dissemination purposes §668.45 Information on completion or graduation rates 6

7. Consumer Information 34 C.F.R. 668, Subpart D §668.46 Institutional security policies and crime statistics §668.47 Report on athletic program participation rates and financial support data §668.48 Report on completion or graduation rates for student athletes §668.49 Institutional fire safety policies and fire statistics 7

8. Consumer Information 34 C.F.R. Part 86 and Part 99 Part 86 – Drug and Alcohol Abuse Prevention –§86.100 What must the IHE’s drug prevention program include? Part 99 – Family Educational Rights and Privacy –§99.7 What must an educational agency or institution include in its annual notification? 8

9. Consumer Information 34 C.F.R. 685.304 Loan Counseling –Entrance and exit counseling –www.dl.ed.gov 9

10. Consumer Information 34 C.F.R. Subpart F Misrepresentation –Educational programs –Financial charges –Employability of graduates 10

11. Consumer Information Program Review Findings Crime Awareness Requirements Not Met –Policies did not contain all required elements –Distribution of statistics and policies not adequate –Failure to report statistics on website or crimes reported in wrong category 11

12. Consumer Information Program Review Findings Consumer Information Requirements Not Met –Policies not developed –Policies not provided to students (SAP, R2T4) –New consumer information requirements pursuant to HEOA not implemented 12

13. Consumer Information Program Review Findings Misrepresentation: –Publication of false information and claims it could not substantiate –Incorrect information about educational programs –Transferability of credits 13

14. Consumer Information New Regulations Incentive compensation Gainful employment State authorization as a component of institutional eligibility 14

15. Consumer Information New Regulations Definition of credit hour to determine program eligibility Verification of information included on student aid application High school diploma definition 15

16. External Partnerships Federal Trade Commission Department of Labor Federal Bureau of Investigation Security and Exchange Commission States Accrediting Agencies Guaranty Agencies 16

17. External Partnerships Federal Trade Commission –Consumer Sentinel Network http://www.ftc.gov/sentinel/ Secure online database of millions of consumer complaints available only to law enforcement ED provides information on complaints to FTC 17

18. External Partnerships Federal Trade Commission –FSA Consumer Information references FTC resources Scholarship Scams www.studentaid.ed.gov/lsawww.studentaid.ed.gov/lsa Fact Sheets www.studentaid.ed.gov/pubswww.studentaid.ed.gov/pubs –Other Partnering Initiatives Student Loans: Avoiding Deceptive Offers—a joint publication of the FTC and ED Guides and other publications 18

19. External Partnerships Department of Labor Dictionary of Occupational Titles –Defines a Recognized Occupation www.careeronestop.org Careers Salaries and Benefits Education and Training Regional Economic Development 19

20. 20 External Partnerships Federal Bureau of Investigation What is the Partnership? –Campus Security Reviews –Data Analysis Why Partner with the FBI? –To provide additional oversight –To make our campuses safe for students and employees today and tomorrow

21. 21 Focused Campus Security Reviews FBI selects certain states for a Quality Assessment Review (12+ per year) FBI then selects a school that has a sworn police department FSA schedules a focused campus security review at that same school or another school in that state

22. 22 Focused Campus Security Reviews FBI reviews most recent reporting of Part I crimes FSA reviews policies and most recent reported statistics to ED –Includes Part I and Part II crimes and disciplinary actions Part I Part II Aggravated Assault Forcible Rape Murder Robbery Burglary Arson Motor Vehicle Theft Larceny-Theft* For Clery reporting: Non-forcible sex offenses Weapons violations Drug Law violations Alcohol Law violations *Larceny-Theft: Not Clery reportable

23. Focused Campus Security Reviews FBI and FSA share information FBI QAR report is attached to FSA’s program review report FSA’s program review report references findings from the FBI review 23

24. External Partnerships Security and Exchange Commission (Publicly Traded Schools) –Share data and information with SEC –Make complaint referrals to and from the SEC Enforcement Division –Review SEC actions taken and reported to Lexis Nexis –Review SEC Quarterly Statements 24

25. External Partnerships State Governmental Offices –Attorney General –Assistant US Attorneys –Licensing –Higher Education 25

26. External Partnerships Accrediting Agencies (Regional or National) –Share final outcomes –Communicate and coordinate school closures –Receive regular accrediting updates 26

27. External Partnerships Guaranty Agencies –Program Reviews of Schools –Referrals to OIG and Program Compliance 27

28. Internal Partnerships Business Operations Reporting Concerns –COD, CPS, NSLDS Systems –100% Direct Loan Transition Office of Postsecondary Education Reporting Concerns –IPEDS –Campus Security System 28

29. Internal Partnerships Office of Inspector General –Referrals to and from (Investigations and Auditor QCR) –Resolution of OIG Audits –Data Analysis Office of the General Counsel –Qui Tams –Advice and Agreements 29

30. Consumer Information Resources 30

31. Consumer Information Federal Student Aid Handbook Volume 2: School Eligibility and Operation –Chapter 6: Providing Consumer Information Describes requirements for consumer information a school must provide to students, the Department, and others Contains a summary of the effects of misrepresentation of school information on the school’s participation in Federal Student Aid 31

32. Consumer Information Resource Information Required to be Disclosed Under the Higher Education Act of 1965 http://nces.ed.gov http://nces.ed.gov/pubsearch/pubsinfo.asp?p ubid=2010831rev 32

33. Consumer Information Resource (Example) Subject AreaRequirement Applies To RequirementHow Disclosed Refund Policy, Requirements for Withdrawal and Return of Title IV Financial Aid All Institutions Participating in Title IV, HEA Student Financial Aid Programs HEA Sec. 485(a)(1)-(2), (20 U.S.C. 1092(a)(1)-(2)). Not changed by HEOA. 34 CFR 668.41(a)-(d), 34 CFR 668.43 Made available through appropriate publications, mailings, or electronic media Each institution must make available to prospective and enrolled students information about the institution’s refund policy; requirements and procedures for official withdrawal; and requirements for return of Title IV, HEA grant or loan aid. 33

34. Consumer Information FSA Assessments Self-assessment tool designed to assist schools in evaluating financial aid policies, processes and procedures Includes assessment modules on students, schools, managing funds, and policies and procedures http://ifap.ed.gov/qahome/fsaassessment.html 34

35. 35

36. 36

37. Consumer Information Additional Sessions Session #27: Consumer Information Disclosure Session #32: Student Loan Consumerism Session #38: Top Ten Audit and Program Review Findings 37

38. Contact Info – School Teams Program Compliance Robin Minor, Chief Compliance Officer (202) 377-4358 Call the appropriate School Participation Team for information and guidance on audit resolution, financial analysis, program reviews, school and program eligibility/recertification and school closure information. School Participation Teams – Northeast Geneva Leon, Director – Wash DC (202) 377-3173 geneva.leon@ed.gov New York/Boston (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont, New Jersey, New York, Puerto Rico, Virgin Islands) Betty Coughlin–New York (646) 428-3737 Rosemary Torpey - Boston (617) 289-0133 Christopher Curry—New York (646) 428-3738 Patrice Fleming - Wash DC (202) 377-4209 Philadelphia (DC, Delaware, Maryland, Pennsylvania, Virginia, West Virginia) Nancy Gifford - Philadelphia (215) 656-6442 John Loreng – Philadelphia (215) 656-6437 Michael Frola - Wash DC (202) 377-3364 Foreign Schools Barbara Hemelt - Wash DC (202) 377-3168 Campus Security Clifton Knight – Wash DC (202) 377-4244 School Participation Teams-South Central Carolyn White, Director – Wash DC (202) 377-3173 carolyn.white@ed.gov Atlanta (Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina) Charles Engstrom - Atlanta (404) 974-9290 Christopher Miller – Atlanta (404) 974-9297 Barbara Murray—DC (202) 377-4203 Dallas (Arkansas, Louisiana, New Mexico, Oklahoma, Texas) Charles Engstrom - Atlanta (404) 974-9290 Janet Dragoo - Dallas (214) 661-9481 Kansas City (Iowa, Kansas, Kentucky, Missouri, Nebraska, Tennessee) Ralph LoBosco-Kansas City (816) 268-0410 Dvak Corwin – Kansas City (816) 268-0420 Phillip Brumback-Wash DC (202) 377-3464 School Participation Teams - Northwest Pat Dickerson, Director – Wash DC (202) 377-3173 patricia.dickerson@ed.gov Chicago (Illinois, Indiana, Minnesota, Ohio, Wisconsin) Douglas Parrott - Chicago (312) 730-1532 David Heath – Chicago (312) 730-1522 Earl Flurkey – Chicago (312) 730-1521 Denver (Colorado, Michigan, Montana, North Dakota, South Dakota, Utah, Wyoming) Harry Shriver - Denver (303) 844-4128 San Francisco/Seattle (American Samoa, Arizona, California, Guam, Hawaii, Nevada, Palau, Marshall Islands, N. Marianas, Federated States of Micronesia, Alaska, Idaho, Oregon, Washington) Martina Fernandez-Rosario (415) 486-5605 Gayle Palumbo (415) 486-5614 Dyon Toney - Wash DC (202) 377-3639 38

39. 39 Contact Information We appreciate your feedback and comments. We can be reached at: Julie Arthur Phone: (206) 615-2232 E-mail: julie.arthur@ed.gov Fax: (206) 615-2508 Fran Susman Phone: (303) 844-3682 E-mail: fran.susman@ed.gov Fax: (303) 844-4695